MarketsAVGOSEP 03, 2026

AVGO +86%: Broadcom guides $230B AI revenue by 2028, locking the compute cost floor through the decade

Q3 FY2026 revenue hit $29.6B and AI semiconductor sales jumped 221% to $16.7B. Hock Tan says supply is secured for $115B in FY27 and $230B in FY28 — the pricing environment under every AI SaaS tool is now visible three years out.

BY HENLEY MARRAST · MARKETS DESK

Broadcom printed $29.6 billion in fiscal Q3 2026 revenue on Tuesday, up 86% year over year, with AI semiconductor revenue of $16.7 billion growing 221% annually and 54% sequentially. Shares fell 4.4% Wednesday anyway, because the story wasn’t the quarter. It was the three-year forward book Hock Tan chose to disclose on the call.

Non-GAAP EPS came in at $3.32 against an LSEG consensus of $3.24, and the revenue beat was roughly 0.5%, which is why 24/7 Wall St. characterized the print as barely clearing the bar. Q4 AI semiconductor guidance of $21.7 billion (up 236% YoY) is the near-term number. The one that matters is further out.

Tan told analysts Broadcom now has “secured supply” for approximately $115 billion in AI semiconductor revenue in FY27 and $230 billion in FY28, anchored by six XPU customers. He named the anchor tenants directly: Broadcom will ship “tens of billions of dollars of processors to Google each year for the next several years,” and Anthropic is on track to deploy 5 gigawatts of TPU 8i silicon in 2027, while OpenAI’s Jalapeno chip scales to a 1.3 gigawatt deployment the same year. Meta rounds out the disclosed roster. The company is guiding to more than $30 in FY2028 EPS against a $25.86 LSEG consensus.

This is what a locked compute floor looks like. Following Nvidia’s $96.2B print and the broader AI earnings gauntlet, two of the largest silicon vendors have now told the market their capacity is spoken for through 2028. Every AI-assisted SaaS tool a small business considers subscribing to this fall runs somewhere in that supply chain.

The pricing environment underneath those tools isn’t a temporary spike waiting to normalize. It’s a three-year commitment, disclosed in advance, by the people selling the picks and shovels. Broadcom reports Q4 on December 9.

Sources

About the author

Henley Marrast

MARKETS DESK

Henley Marrast covers AI-equity flow, accelerator demand, and earnings prints for AI Sheet Report. She leads coverage of the public AI complex from the New York markets desk, with a focus on the daily tape and quarterly results. She has been writing about technology markets for several years.